TSMC Q4 outlook looks rosy on new orders: report

With new orders received by Taiwan Semiconductor Manufacturing Co. (TSMC) from Xilinx and Advanced Micro Devices (AMD), analysts are expecting the world's largest made-to-order chipmaker to post brilliant numbers for the fourth quarter, reported the local Financial Times yesterday.

Under a partnership between TSMC and Xilinx, TSMC will make chips under Xilinx's 7 series, including Virtex-7, Kintex-7, and Artix-7. The chips will be made with the cutting-edge 28-nanometer technology and will lower power consumption by 50 percent compared to previous-generation products.

Meanwhile, TSMC has already begun making AMD's Ontario and Zacate accelerated processors using the 40-nanometer technology, and the chips are expected to be tested and packaged by Siliconware Precision Industries Ltd. (SPIL), the paper reported. Advanced Micro Devices last week held a technical forum in Taipei and confirmed that it will contract TSMC to make the Ontario processor targeting netbooks, as well as the Zacate processor targeting all-in-one desktops.

AMD asked TSMC to make the Ontario and Zacate chips as a risk-averting measure, after it contracted GlobalFoundries to make the 32-nanometer Llano chip for the mainstream market, the paper reported, citing equipment makers.

AMD will also ask SPIL to conduct the testing and packaging operations for the two chips, seeking to build a processor supply chain in Taiwan.

In fact, the Ontario and Zacate processors add to other chips that AMD has contracted SPIL to test and package. These chips include the 45-nanometer single-core Sargas processors under the Sempron series, as well as the 45-nanometer dual-core processors under the Athlon II X2 series.

The news did little to lift both TSMC and SPIL's stocks yesterday. The shares dropped 0.48 percent and 3.28 percent, respectively. The TAIEX closed down 52 points to 8,291. TSMC will have its quarterly investors conference today.